Carol's Dolls Has Fixed Operating Costs of $25,000

question 14

Multiple Choice

Carol's Dolls has fixed operating costs of $25,000. Its sale price is $55 per doll, and its variable operating cost is $30 per doll. It sells 3,000 dolls per month. The firm's earnings before interest and taxes is ________.

• A) $37,500
• B) $55,000
• C) $75,000
• D) $50,000

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